Permanently Reviving the Temporary Insider
Journal of Corporation Law, Vol. 36, p. 343, Winter 2011
Posted: 13 May 2011
Date Written: May 12, 2011
In SEC v. Dirks, the Supreme Court spelled out a theory of insider trading liability for what have been known variously as "temporary Insiders," "constructive insiders," and/or "quasi-insiders." Without being clearly rejected by courts or strongly criticized by commentators, this temporary insider theory has largely fallen into desuetude. This article makes the theoretical and practical case for reviving the temporary insider category of insider trading liablity.
Keywords: insider trading, securities fraud
JEL Classification: K22, K42
Suggested Citation: Suggested Citation